Time of Supply Under GST

GST is payable on supply of goods or services. Time of supply refers to the point in time when the liability to pay tax arises. Learn more on time of supply for supply of goods or services under forward charge and reverse charge.

This document covers

Time of Supply of goods under Forward Charge
Time of supply of goods under Reverse Charge
Time of supply of services under Forward Charge
Time of supply of services under Reverse Charge
Time of supply of vouchers exchangeable for goods and services
Time of supply of goods and services in Residual cases

1. Time of Supply of goods under Forward Charge

The time of supply for goods that are taxable under forward charge is earlier of the following dates

Date of issue of invoice by the supplier or the last date on which the invoice ought to have been issued.
Date of receipt of payment by the supplier.

Note 1 : GST is not required to be paid at the time of receipt of advance for supply of goods. This relief is only for goods and not for supply of services.

Note 2 : W.e.f 15 th Nov 2017, GST on supply of goods is payable only on the basis of issuance of invoice.

Note 3 : In case of Payment upto Rs 1000 received in excess of value of goods, the supplier can choose to take the date of invoice for payment of GST.

For comprehensive understanding @ Refer at for time lines of issue of invoice

2. Time of supply of goods under Reverse Charge

The time of supply of goods that are taxable under reverse charge is earlier of the following dates

Date on which the goods are received
Date on which payment is received.
Date immediately following 30 days from the date of issue of invoice.

NOTE

In case of supply of goods under reverse charge, GST is payable at the time of receipt of advances.

3. Time of supply of services under Forward Charge

The time of supply of services that are taxable under forward charge is earlier of the following dates.

If the invoice is issued within time limit prescribed
1. Date of Invoice
2. Date of receipt of payment Whichever is earlier.
If the invoice is not issued within time limit prescribed
1. Date of provision of service
2. Date of receipt of payment Whichever is earlier

NOTE

GST is required to be paid on the Advances received for the services to be provided

4. Time of supply of services under Reverse Charge

The time of supply of services that are taxable under reverse charge is earlier of the following dates.

Date of payment
Date immediately following 60 days since issue of invoice by the supplier

5. Time of supply of vouchers exchangeable for goods and services

The time of supply of goods or services is date of issue of the voucher if it is identifiable at the time of issue of voucher.
In all other cases, the time of supply is date of redemption of voucher.

6. Time of supply of goods and services in Residual cases

The time of supply of goods or services in cases where periodical return is required to be filed is due date of filing such return.
In other cases, the time of supply of goods or services is date of payment of tax.